$GKNT Q2 Ending June 30 - Thinkgeek, Bucky Balls Consumer Complaints and continuing losses
Shareholder value challenged Geeknet announced Q2 ending June 30 numbers today (Aug 2, 2012). The clusterf--- continues... - (updated from an earlier blog post comment). (SEC Form 10-Q for period ended June 30 here).
Shortly after Q2 ended (June 30, 2012) Slashdot (Alexa world ranking 1,775) nemesis Digg (Alexa world ranking 194) announced they sold as an asset sale for $500,000.00. Note: $200M Google offer. Wow! To exacerbate that GKNT announced today (Aug 2, 2012) "...Media (slashdot, sourceforge...) revenue decreased 8 percent to $5.3 million for the second quarter of 2012, compared to $5.8 million for the second quarter of 2011...". [emphasis added]. GKNT announced May 11, 2012 "...Plans to Conduct Review of Strategic Alternatives for Online Media Business...".
That makes slashdot and SourceForge worth about $1.42. SourceForge was a victim of the same management negligence as slashdot seeing sourceforge simply slashdotted by github.
So...GKNT lost $2.4M from Operations (sans non-recurring/extraordinary revenues) Q2 ending June 30 2012 also citing "...Adjusted EBITDA for the second quarter of 2012 includes a $210,000 charge against inventory related to the voluntary removal of a product from the ThinkGeek site following a Consumer Product Safety Commission complaint against the manufacturer..." Note: Bucky Balls was one of the lead items Thinkgeek prominently advertised at thinkgeek.com throughout 2011 into XMAS 2011 and into 2012. Yesterday (Aug 1) the press had this to say about Bucky Balls. And we know what the Chairman and CEO of GKNT thinks about this Presidency.
One question and one closing comment/Recommendation.
Q: How are those ten Directors (aka insider ATM) working out for this shareholder value challenged microcap?
Recommendation: FTW meh.
EBITDA EBITDA EBITDA, "THAT'S ALL FOLKS!"
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